Microsoft's cloud-computing business hits Wall Street expectations

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Microsoft's cloud-computing business hits Wall Street expectations

Microsoft s third quarter sales rose 19%, driven by robust demand for personal computer solutions and the strongest quarterly jump in virtual PC deliveries in more than two decades.

The company estimated revenue in the exercice ended March 31 to $41.7 billion, the Redmond-based software maker said Tuesday in a statement.That compares to the $41.1 billion average estimate of analysts polled by Bloomberg.The shares slipped in extended trading as sales missed the highest projections, which ranged as high as $41.9 billion.

Azure, which sells Internet-based computing services to corporations, saw the sales fall by 50% in the pre-quarter, matching the gain that Microsoft posted in the previous quarter.While Azure is growing with high competition for big deals from Google and Amazon.com Inc., the dominant cloud service, and Amazon.com Inc.A new semiconductor shortage also restricted the sales of Xbox consoles following the release of a global machine late last year.

The Street was hoping for a stronger top-line beat, said Dan Ives, an analyst at Wedbush.'Although Azure came in ahead of the Bulls expectations, this remains a key location for the bulls.

In recent period, Microsoft said the net income was $15.5 billion, or $2.03 a share, or $2.03 a share.Analysts predicted $1.78 in 2017, a rise of $407.8 billion in capital structure worldwide.

Microsoft shares were roughly 3.4% dropped in extended trading after the report.The stock has increased more than 50% in the past year, and the company's market value is approaching $2bn as investors maintain their enthusiasm about Chief Executive Satya Nadella's reinvention of the software maker centered on growth in cloud-based software and services.

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